Answer :
Final answer:
Penetration pricing is a strategy designed to enter a market with low prices to quickly gain market share, and then potentially raise prices later, without the intention of driving competitors out of business unlike predatory pricing. Therefore, the correct option is B
Explanation:
The correct answer to the question is B) Penetration pricing. Penetration pricing is a long-term discount pricing strategy designed to achieve profitability through high sales volume. This approach typically involves setting prices low to attract a large number of customers and gain market share quickly. Once the market share is captured, the company may gradually increase prices.
In contrast, predatory pricing, which is oftentimes mentioned in connection with anti-dumping cases, involves setting prices extremely low with the intention to drive out competitors, which can sometimes be part of the Monopoly issue. Unlike predatory pricing, penetration pricing is usually not meant to eliminate competitors but rather to establish a presence in a competitive market.